SBA loan basics
Short answer
You must inform your lender, and the new buyer will typically need to assume the loan or pay it off at closing. The SBA and lender will need to approve the change of ownership.
An SBA 7(a) loan is made to your business, and the sale of that business constitutes a change of ownership. The lender must approve the new ownership and assess the buyer's ability to assume the debt. If the buyer doesn't qualify, the loan usually must be paid off at closing.
If you sell your business with an outstanding $200,000 SBA loan, the buyer may either assume the loan (requiring lender and SBA approval and meeting their eligibility) or the loan amount will be deducted from the sale proceeds to be paid off at closing.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 57 - 7(a) Loan Servicing and Liquidation
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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